Cyprus GDP reaches €6.61 billion in Q2 — construction, ICT, finance key sectors

The Cypriot economy grew by 3.6 per cent in the second quarter of 2024, compared to the same period in 2023, according to a report released this week by the Cyprus Statistical Service (Cystat).

The service also noted that the construction sector was a key economic driver, witnessing growth of 10.4 per cent during this time.

Specifically, the growth rate of the economy for the second quarter of 2024 is estimated at 3.6 per cent compared to the same quarter of 2023.  

However, after adjusting the gross domestic product (GDP) for seasonal variations and working days, the growth rate is calculated at 3.7 per cent.

In addition, Cyprus’ GDP at the end of the second quarter of 2024 amounted to €6.61 billion.

Regarding the production approach for calculating GDP, the growth rate is mainly attributed to the sectors of hotels and restaurants, construction, information and communications, wholesale and retail trade, and repair of motor vehicles. 

More specifically, according to the data, the sector of agriculture, forestry and fishing contributed €94.8 million, marking a 1.5 per cent increase from the same quarter last year and a 0.7 per cent increase from the previous quarter.

The mining and quarrying, manufacturing, electricity, gas, steam and air conditioning supply, and water supply sectors collectively contributed €406.3 million, reflecting a 4.8 per cent increase on an annual basis and a 1.4 per cent increase on a quarterly basis.

The manufacturing sector alone contributed €323.2 million, showing an annual growth of 3.3 per cent and a quarterly increase of 1.5 per cent.

The construction sector contributed €382.4 million, showing a significant increase of 10.4 per cent compared to the same quarter last year and 1.8 per cent compared to the first quarter of 2024.

The sector of wholesale and retail trade, repair of motor vehicles and motorcycles, transport and storage, and accommodation and food service activities, which includes hotels and restaurants, contributed €1.38 billion to the GDP.

This represents an increase of 4.2 per cent compared to the second quarter of 2023 but a slight decrease of 0.2 per cent compared to the previous quarter.

The information and communications sector contributed €688.5 million to the GDP in the second quarter of 2024, marking an annual increase of 7 per cent and a 2.1 per cent increase compared to the first quarter of 2024.

The financial and insurance activities sector contributed €443.8 million to the total amount, recording a decrease of 0.5 per cent in the second quarter of 2024 and a further decrease of 0.9 per cent compared to the first quarter of 2024.

The real estate activities sector contributed €515.1 million, showing an annual increase of 1.2 per cent and a quarterly increase of 0.6 per cent.

The professional, scientific and technical activities, and administrative and support service activities sector contributed €621.7 million, showing a growth of 3.5 per cent compared to the same quarter last year and a modest increase of 0.2 per cent compared to the first quarter of 2024.

The public administration and defence, compulsory social security, education, human health, and social work activities sector contributed €1.11 billion, with an annual increase of 3.3 per cent and a quarterly increase of 0.4 per cent.

The arts, entertainment and recreation, repair of household goods, and other activities sector contributed €207.9 million, showing an increase of 1.7 per cent compared to the second quarter of 2023 and a 1.3 per cent increase compared to the first quarter of 2024.

Meanwhile, final consumption expenditure reached €5.33 billion, marking a 5.2 per cent increase compared to the second quarter of 2023 and a modest 0.3 per cent increase from the previous quarter.

Within this, household spending and non-profit institutions serving households (NPISH) contributed €4.09 billion, showing a 5.2 per cent increase compared to the same period last year, while remaining unchanged compared to the first quarter of 2024.  

Meanwhile, government expenditure amounted to €1.24 billion, reflecting a 5.1 per cent annual increase and a 0.9 per cent increase compared to the previous quarter.

Moreover, gross fixed capital formation (GFCF), a key indicator of investment activity, surged to €1.37 billion, representing a substantial 11.1 per cent increase compared to the second quarter of 2023 and an impressive 9.8 per cent rise from the previous quarter.  

Even when excluding ships and aircraft, GFCF demonstrated robust growth, reaching €1.34 billion, which is a 6.3 per cent increase on an annual basis and a 1.7 per cent increase quarterly. 

Additionally, imports of goods and services increased to €6.11 billion, up by 7.3 per cent compared to the second quarter of 2023 and by 2.3 per cent compared to the first quarter of 2024.

At the same time, the exports of goods and services grew to €6.05 billion, reflecting a 3.7 per cent increase on an annual basis and a 1.2 per cent rise from the previous quarter.